Core Viewpoint - Domestic cross-border payment institutions are actively seeking to acquire overseas payment licenses to meet the diversified financial service needs of outbound enterprises [1][2][5]. Group 1: Market Demand and Trends - The demand for financial services from outbound enterprises has evolved from merely quick payment collection and currency exchange to a comprehensive suite of services including payment collection, disbursement, currency exchange, and cash management [1][3]. - There is a growing trend among outbound enterprises to localize their operations, which increases the need for local payment solutions and financial services [1][3]. Group 2: Importance of Payment Licenses - Obtaining local payment licenses is crucial for cross-border payment institutions to establish partnerships with local banks and financial institutions for currency exchange and cash management services [1][4]. - High-quality payment licenses are seen as essential for ensuring compliance and long-term operational sustainability in foreign markets [2][4]. Group 3: Service Capabilities Required - Cross-border payment institutions need to develop three key service capabilities: global coverage for payment collection, comprehensive payment services for overseas operations, and a robust ecosystem for financial management and payment solutions [3][4]. - The ability to connect with various local payment methods is critical, especially in regions like Southeast Asia where payment preferences vary significantly [3][4]. Group 4: Acquisition Strategy - Due to the challenges in obtaining high-quality payment licenses, many cross-border payment institutions are considering acquisition as a more efficient strategy to gain access to these licenses [2][5][7]. - The acquisition process still requires compliance with local regulatory standards, emphasizing the importance of a strong risk management framework [8]. Group 5: Case Study of XTransfer - XTransfer recently obtained an Electronic Money Institution (EMI) license from the Dutch Central Bank, allowing it to offer payment and currency exchange services across the European Economic Area [6]. - The EMI license provides a broader scope of services compared to previous licenses, enabling XTransfer to support outbound enterprises with various financial needs in Europe [6][8]. Group 6: Regulatory Challenges - The process of obtaining high-quality payment licenses involves stringent regulatory requirements, including anti-money laundering (AML) and customer identification protocols [8]. - Cross-border payment institutions must demonstrate their commitment to compliance and local market engagement to successfully acquire licenses through both application and acquisition methods [8].